Pizza Hut will close 250 locations across the United States in the first half of this year as parent company Yum! Brands conducts a strategic review of the struggling pizza chain. The closures represent about three percent of Pizza Hut’s U.S. footprint and are part of efforts to address falling sales and increased competition in the fast-food industry.
The decision was announced during Yum! Brands’ earnings call on Wednesday, where new CEO Chris Turner said, “Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands.” Turner added that no deadline or guarantee exists for the review to result in a sale or other transaction.
Pizza Hut has posted negative sales for seven consecutive quarters, lagging behind Yum! Brands’ other major chains, Taco Bell and KFC, both of which reported growth in recent quarters. While Pizza Hut accounts for about 11 percent of Yum! Brands’ operating profit, Taco Bell’s U.S. business makes up about 38 percent. Competition from rivals like Domino’s and changing consumer habits—driven by inflation and price hikes—have put additional pressure on Pizza Hut’s U.S. business, even as its international locations have seen some growth.
Pizza Hut ended the third quarter of 2025 with 19,872 locations worldwide, including 6,474 in the United States. The company has been shifting from traditional dine-in restaurants to a focus on delivery and carryout, but these changes have not fully reversed its U.S. sales declines.
Yum! Brands, based in Louisville, Kentucky, has hired Goldman Sachs and Barclays to advise on the strategic review, as detailed in its official press release. The company has not set a timetable for the review’s completion and will only provide updates if necessary.
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